Jakarta: Indonesia’s external debt grew 10.1% percent (yoy) in the second quarter of 2019 (Q2/2019), higher than 8.1 percent (yoy) in the previous quarter.
It was primarily due to a net withdrawal of external debt and the strengthening of rupiah against US dollar resulted in a more substantial amount of rupiah debt in terms of US dollar.
The country's external debt was recorded at USD391.8 billion at the end of Q2/2019, consisted of government and central bank debt of USD195.5 billion, as well as private debt (including state-owned enterprises) amounted to USD196.3 billion.
"The rising of total external debt mainly driven by government external debt, amid slower growth of private external debt," Bank Indonesia said in a press statement released on Thursday, August 15, 2019.
According to the central bank, government external debt in Q2/2019 stood at USD192.5 billion or grew 9.1% percent (yoy), higher than 3.6 percent (yoy) in the previous quarter.
On the other hand, private external debt outstanding at the end of Q2/2019 grew 11.4 percent (yoy), moderated from the previous quarter growth of 13.3 percent (yoy), mainly stemmed from an increase in corporate loan repayments.
Improving from the previous quarter, Indonesia's external debt to Gross Domestic Product (GDP) ratio stood at 36.8 percent at the end of Q2/2019
In addition, Indonesia's external debt structure remained dominated by long-term debt, accounted for 87.0 percent of the total external debt.
In order to maintain a healthy external debt structure, Bank Indonesia in close coordination with the Government, continues to monitor external debt by promoting the prudential principle application in its management.
Furthermore, external debt's role will also be optimized in supporting development financing without incurring the risks which may affect macroeconomic stability.